EasyJet sees profit hit from strikes, weather and EU exit vote

EasyJet is warning that revenue-per-seat over the second half is likely to be negatively affected by the aftermath of the UK’s European Union exit decision.

The UK budget carrier has revealed a £28 million ($38 million) impact on third-quarter pre-tax profits from other circumstances, including strikes, weather disruption and the EgyptAir Airbus crash.

These events have resulted in an 8.6% fall in revenue-per-seat, at constant currency, for the third quarter – a greater decline than the 7% forecast.

But EasyJet is also warning that “economic and consumer uncertainty” following the 23 June referendum is likely to contribute to a weaker second-half performance.

EasyJet is predicting that revenue-per-seat over the second half will be down by “at least a mid-single-digit percentage” compared with the second half of 2015.

The airline says that its third-quarter operations have been “extremely challenging”, with over 1,000 flight cancellations – some 700 in June alone – arising from French air traffic control strikes, congestion at London Gatwick, and the impact of severe weather.

In June last year the airline recorded 487 cancellations but 86% of these related to a fire at Rome Fiumicino.

EasyJet says the EgyptAir crash in May also had an effect on consumer demand. It adds that it is expecting changes in fuel prices and exchange rates to generate additional costs of £25 million compared with forecasts made at the end of the first half.